Caribbean Clean Energy Limited announced yesterday that its investment fund, MPC Caribbean Clean Energy Fund LLC, has entered into an acquisition arrangement for the 33.4-megawatt (MW) solar park Monte Plata in the Dominican Republic.
The transaction should close in the third quarter of 2021.
Monte Plata began commercial operation on 1 September 2016 and will avoid an estimated 1,716,000 tons of carbon diovide emissions throughout its lifetime.
With this addition, Caribbean Clean Energy will increase to four the number of energy assets that it owns in the Caribbean under MPC Caribbean Clean Energy Fund LLC portfolio — the investment company in which MPC Caribbean Clean Energy Limited exclusively invests.
During the first quarter ended March 31, 2021, the company completed and successfully commissioned San Isidro, a 6.5-MW solar park in El Salvador that the investment company had acquired last December.
During the quarter as well, the company reported that the technical performance of Paradise Park, a solar park in Jamaica, met the expectations despite difficult circumstances, with plant availability and production output above target.
San Isidro, the recently commissioned solar park in El Salvador, was reported as slightly underperforming with plant availability and production output below target.
However, management said this was not unusual during the start-up phase, in the first year. “Correction measures have been taken and should lead to an improvement in the relevant key figures and thus show positive results in a timely manner,” it was stated.
Tilawind, MPC’s wind farm in Costa Rica, experienced low levels of wind, but “achieved good results and is slightly below the expected target” management stated, adding: “The plant availability for Tilawind was also above our expectations.”
The company noted that at the beginning of 2021, the Costa Rican government-run electricity and telecommunications services regulator announced a new methodology for tariff band calculation for all wind farms in Costa Rica. As a result, the tariff for 2021 calendar year has been reduced since 10 February 2021.
The investment company is in the process of assessing the commercial impact on revenues and is consulting with its legal advisor and the Costa Rican Renewable Energy Association.
MPC reported no Q1 revenues (revaluation gains on investments); however, expenses for the quarter climbed to US$80,720, up from US$39,208 in the same quarter in 2020.
Net losses for the quarter also jumped over 100 per cent to US$80,720, up from US$39,208 a year earlier.
In the quarter under review, MPC pursued clearance for subscriptions for capital raised via a convertible note. An additional US$10 million is expected to be invested in MPC Caribbean Clean Energy Fund LLC in Q2 2021.
The company said it plans to continue diversification of its portfolio to optimise its asset performance.